Stifel Lifts Microsoft Price Target to $530 on Strong Copilot Adoption
Stifel has raised its price target for Microsoft stock to $530 from $450, citing stronger demand for premium software and improved efficiency in Azure.
The analyst, Brad Reback, pointed out that Microsoft is seeing broader adoption of Copilot as customers move from testing to wider deployments.
Copilot is a tool that helps users with tasks such as writing and suggesting alternative phrases. Its adoption is seen as a key driver for Microsoft's revenue growth in the second half of 2026.
Reback also noted that Microsoft is positioning itself to take advantage of rising engagement and customer interest in higher-priced Microsoft 365 offerings, which could support revenue per user.
The company's strategy of supporting multiple large language models across Azure, GitHub, and Copilot rather than relying on one model provider gives it more flexibility as AI workloads develop.